Are Checkers' restaurant sales payments considered variable, and if so, why?

According to Checkers' 2025 Franchise Disclosure Document, restaurant sales payments are considered variable due to coupons and discounts. These coupons and discounts are recorded at the time of food delivery, which affects the total revenue recognized from restaurant sales. This variability is a key factor in how Checkers accounts for its revenue. The restaurant sales performance obligation is satisfied upon the delivery of food to the customer at Company-operated restaurants. The payment terms are immediately upon the delivery of the food to the customer. The consideration is variable generally due to coupons and discounts which are recorded at the time of food delivery.

For a prospective Checkers franchisee, this means that the actual revenue received from sales can fluctuate based on the use of coupons and discounts by customers. This variability needs to be considered when forecasting sales and managing finances. Franchisees should be prepared to track and account for these discounts accurately to reconcile sales figures. This also means that the franchisee's revenue will be impacted by any promotional strategies involving coupons or discounts implemented by Checkers.

In addition to direct restaurant sales, Checkers also recognizes revenue from delivery sales through third-party partners. These delivery sales are also subject to variability, as the revenue is recorded net of costs such as commissions, fees, and taxes. The net revenue from delivery sales is typically paid within 2 to 7 days from the end of the week of sale, and the revenue amount varies based on the costs of the delivery service and the specific delivery partner involved. This further emphasizes the importance of careful financial tracking and management for Checkers franchisees, as multiple factors can influence the final revenue figures.